LAWSUITS NEWS & LEGAL INFORMATION
Buyout Cancellation
Los Angeles, CA: (Jan-31-08) Reddy Ice Holdings Inc., a maker of packaged ice, filed charges against hedge fund GSO Capital Partners, alleging that it was owed money due to the cancellation of a $1.1 billion deal, in which it was to be bought by GSO Capital Partners. Sources stated that the deal went awry, forcing the company and GSO to try and craft an alternative merger plan after Morgan Stanley, which had agreed to provide about $700 million in debt financing for the deal, said it may pull its funding for the buyout.
The parties recently announced that they had entered into a settlement agreement, resolving the lawsuit. Under the deal, Reddy Ice Holdings will receive a $21 million cash settlement towards the cancellation of the buyout. The money will be paid by the affiliates of GSO. Additionally, Reddy Ice will pay up to $4 million of fees and expenses incurred by GSO and its third party consultants in connection with the proposed transaction. Company spokespersons stated that Reddy Ice also released preliminary earnings and outlook information that does not include the payments outlined in the settlement agreement. The company has further released unaudited financial results for 2007 and a 2008 forecast. [REUTERS: BUYOUT CANCELLATION]
Published on Feb-1-08
The parties recently announced that they had entered into a settlement agreement, resolving the lawsuit. Under the deal, Reddy Ice Holdings will receive a $21 million cash settlement towards the cancellation of the buyout. The money will be paid by the affiliates of GSO. Additionally, Reddy Ice will pay up to $4 million of fees and expenses incurred by GSO and its third party consultants in connection with the proposed transaction. Company spokespersons stated that Reddy Ice also released preliminary earnings and outlook information that does not include the payments outlined in the settlement agreement. The company has further released unaudited financial results for 2007 and a 2008 forecast. [
Legal Help
If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please click the link below.Published on Feb-1-08
